Michaela Merz

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Czech Republik – Introduction of general reverse charge as from 2020 probable

The Czech Republic has applied for the introduction of a generalised reverse charge system, which will apply to all supplies of goods and services in the Czech Republic worth over 17,500 euros (approx. 450,000 CZK). In such cases, the obligation to declare VAT will automatically be shifted from the supplier to the customer. The possibility of introducing this measure in local legislation is subject to compliance with the entry criteria stated in the Council Directive and to the final approval of the EU Council. If the Czech application is approved, the MoF estimates that changes to the Czech VAT Act will be effective starting from 1 July 2020 and lasting until June 2022. Continue reading

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EU – Fraud Assessment and Intelligence Tool (FAIT)

Effective assessment and monitoring of risks associated with business partners

Carousel frauds have recently become a hot topic in Eastern Europe. Tax authorities investigate hundreds of cases and suspicious schemes also based on information received from the VAT control statements. Continue reading


One can always cheat

I spent two days in Prague on client business. And as my first meeting started early in the morning I had to travel on Sunday evening.

I took the opportunity and wrote to my former colleagues. It would be nice to meet a few of them again. Four replied positively and so five of us met in a small beerhouse. I have never really liked beer, but I didn’t want to be stand-offish right from the beginning and when Dani ordered five beers, I didn’t object. Continue reading


Czech Republic – Electronic evidence of sales as from 1 of December 2016

PwC_fl_30mmh_cThe President of the Czech Republic signed a new fiscal law “Act No. 112/2016, the Electronic evidence of sales Act”, in March 2016. New legislation will concern those who are taxpayers of a personal or corporate income tax and the payment meets the formal requirements for a registered sale, e.g. it is made in cash, by credit card, cheque, voucher or in any similar way. However, defined payments are not subject to the electronic evidence of sales like payments done via a bank transfer, income which is not subject to income tax, etc. Continue reading

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Czech Republic – New amendment of the Czech VAT Act

750686_web_R_by_detlef menzel_pixelio.deBelow you can find information about the draft amendment of the Czech VAT Act that is expected to come into effect from 1 May 2016.

The draft amendment, among other, introduces the local reverse charge in case the supply of goods to a Czech VAT payer is performed by a non-established person, i.e. the Article 194 of the EU VAT Directive is being implemented into the Czech VAT Act. Continue reading

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Music, History and International Collaboration

Janacek_Projektlogo01It is common knowledge that the media persistently report on the strife, disharmony and suffering in our world caused by parties unable to find agreement or ways to compromise. Consequently, too seldom do the media give enough time or space to those successful and fruitful collaborations among people, which result in positive outcomes. It just shows that the adage “Good news doesn’t sell” still applies. Continue reading

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EU Finance Ministers discuss VAT fraud – 15 January

Photo_RGB_R_DUB_D4_2152-2.jpgDuring the Ecofin Council meeting in mid-January, EU Ministers of Finance notably discussed VAT fraud. The discussion took place at the request of Czech Republic, which emphasised the need to transcend the current focus on corporate tax and pay more attention to VAT fraud. Continue reading